MEXICO CITY, Dec 11 (Reuters) - Newmont's ( NEM ) Mexican

division said on Wednesday it sees an "openness for dialogue"

from the Mexican government, amid the proposed increase in

mining royalties, which could potentially hinder billions of

dollars in investments.

WHY IT'S IMPORTANT

The proposed increase in mining royalties could block more

than $6.9 billion in investments over the next two years,

according to the country's mining chamber, adding to the

challenges impacting the sector such as previous administrative

decisions and potential legal reforms.

Newmont ( NEM ), a global leader in gold mining, operates

the huge Penasquito open-pit gold mine in Mexico which produces

gold, silver, zinc and lead, and processes an average of 110,000

metric tonnes of fresh ore daily.

KEY QUOTES

"There is a lot of interest from the companies, a lot of

commitment to continue investing in Mexico," Ana Lopez, manager

of Newmont's ( NEM ) unit in Mexico said, although she noted that "the

best conditions in terms of certainty, opportunity and

collaboration are also necessary for us to continue to do so."

"This and any norm that is approved and applies to us, what

we have to do is comply with it," she said, referring to the

controversial royalty increase proposal.

Lopez also welcomed the stance taken by Mexican President

Claudia Sheinbaum last week, proposing a review of a legal

reform which sought to ban open-pit mining, an issue that has

also generated concern in the industry.

CONTEXT

The Mexican government's proposal aims at increasing

royalties from the industry, arguing that metals prices have

grown steadily in recent years.

The mining sector was already impacted under previous

President Andres Manuel Lopez Obrador, who refused to grant new

mining concessions, and it faces new challenges with the

administration of his successor, Sheinbaum, as legal reforms

could hinder mining operations in Latin America's second largest

economy, after Brazil.